Yen falls on hopes of Japanese intervention

HONG KONG: Hopes that the Japanese central bank will announce measures to stem the yen's rise lifted the dollar on Thursday while Asian stocks were also given a boost.

Traders bought up the greenback following a report that the Bank of Japan (BoJ) will consider steps to prevent any further strengthening of the nation's currency, which hit a 15-year high against the US unit last week.

Sentiment was also stoked after Japanese Finance Minister Yoshihiko Noda reiterated at a regular press briefing that he would closely watch the forex market.

The dollar climbed to 85.54 yen in Tokyo morning trade, compared with 85.44 in New York Wednesday. The euro slipped to 1.2811 dollars from 1.2852 and to 109.49 yen from 109.79 in New York.

The Sankei Shimbun reported that the BoJ may expand its programme to provide funds to financial institutions at a 0.1-percent fixed rate for three months, which is expected to help lower interest rates in the market and bring down the yen.

Stock markets were broadly up amid hopes that the measures could give a much needed lift to the world's second biggest economy.

Tokyo's Nikkei added 1.03 percent by the break with exporters, who suffer from a strong yen, on the rise.

Hong Kong was 0.68 percent higher, Seoul rose 0.86 percent and Singapore was 0.23 percent up.

However, Sydney was 0.42 percent lower despite miner BHP Billiton's bid for Canada's Potash Corp, the world's largest fertiliser producer.

The index heavyweight announced on Wednesday a 40 billion US dollar hostile takeover after a previous offer was rebuffed by the Canadian company on Tuesday.

BHP weighed on the market for a second straight session as it shed 1.02 percent. Tival Rio Tinto was 0.63 percent off on profit-taking after benefiting from BHP's heavy losses Wednesday.

On Wall Street the Dow edged up 0.09 percent after upbeat earnings figures from discount retail giant Target and John Deere, the world's largest tractor manufacturer.

New York's main contract, light sweet crude for delivery in September, fell nine cents to 75.33 dollars a barrel.

Brent North Sea crude for October delivery slipped six cents to 76.41 dollars.

Gold opened at 1,228.00-1,229.00 US dollars an ounce, up from Wednesday's close of 1,222.00-1,223.00 dollars.